Yilu (Ali Health) VS JD Health, another competition of e-commerce giants

Image source-mob Research Institute

• Pharmaceutical e-commerce: provides users with medicines, health care products and medical equipment and other commodities through three business channels.
• The platform is self-operatedAli Health Pharmacy sells medicines for profit, Tmall Pharmacy provides medicines by attracting suppliers and retailers to open stores on the platform, and the 020 Pioneer Alliance cooperates with offline pharmacies for complete and fast delivery.
• Internet medical treatment: provides C-end users with appointment services such as vaccines, physical examinations and registration, as well as online graphic and telephone consultation services, and Yizhilu Health Encyclopedia provides users with health science content.
• Smart medical treatment: intelligently recognizes the text, images, voice, physiological signals and other contents uploaded by users, completes initial diagnosis and prescription.
• Consumer medical care: links users and institutions through the platform, and provides users with appointment and payment services for medical and aesthetics, oral cavity, physical examination, vaccines and other medical and health items.
• Product traceability business: code on the assured platform, the full-link traceability system has been continuously improved, and a strong moat has been built.

(3) JD Health business model and business structure

JD Health’s main business is divided into retail pharmacy business and online medical care Health service business. Through the coordinated development of the two businesses, the company is committed to building a health management platform with the supply of medicine and health products as the core, medical services as the starting point, and a digital-driven health management platform for the whole life cycle of users. JD Health redefines the way users manage their personal health by establishing a system of medical and health products, servers, and omni-channels.

Image source-mob Research Institute

The retail pharmacy business operates through three modes: self-operated, online platform and omni-channel layout:

• Self-operated business is mainly operated by Jingdong Pharmacy. Users can access JD Pharmacy through the website and APP. In addition, JD Health also directly operates some offline pharmacies through the self-operated model. The
• online platform provides some long-tail products that Jingdong Pharmacy does not provide, as a supplement to the platform product selection.
• Omni-channel layout is a location-based service. After a user places an order with the nearest pharmacy on the platform, the pharmacy receives the order and prepares the product, and JD Health is responsible for delivery (pharmaceutical O2O model).
• 's self-operated, online platform and omni-channel layout can create synergies with each other to meet users' needs for diverse product choices and flexible express delivery time.
• Online medical and health services include Internet hospital services and consumer medical and health services, providing online consultation, chronic disease management, family doctor and appointment services.

Summary:In terms of business models, both Alibaba Health and JD Health’s business models are based on online pharmacies, with self-operated pharmacies and cooperative offline pharmacy resources. The basic business includes pharmaceutical e-commerce, Internet medical care, smart medical care, and consumer medical care, covering aspects such as pre-illness prevention, post-illness registration, consultation and prescription, post-illness management, and daily health management. At this stage,

has formed a competition for service quality, including drug delivery speed, online consultation response speed, and consultation quality. Most of the drugs purchased are just needed, and the speed of drug delivery to a certain extent represents the reliability of the product. JD Health, which builds its own logistics in the direction of drug delivery services, has an advantage. Therefore, JD Health is more optimistic about its development potential.

2. Market analysis

2.1 Market size

It is estimated that in 2021, the number of mobile medical users in China will reach 700 million.

Scale of Internet Medical Users

At present, there are more than 1,000 companies engaged in online medical industry-related businesses in my country, with more than 13,000 patents, and mobile medical is a new application of mobile Internet in the medical industry. With the increase in the popularity of the Internet and the development of tools such as mobile payment and remote video, the promotion of mobile medical care is faster and covers a wider range of user types.

In 2020, the number of mobile medical users in China will reach 650 million. Under the influence of the new crown epidemic in 2020, residents' demand for the use of pharmaceutical e-commerce and Internet medical platforms has further increased, driving the rapid growth of user scale. It is expected to reach 700 million in 2021.

In 2020, the Internet medical market will exceed 90 billion yuan.

Internet medical market size

In 2020, the Internet medical market will exceed 90 billion yuan. The emergence of the epidemic has caused a "flow blowout" in the mobile medical market, and online consultation has become the main way for patients to obtain medical services during the epidemic prevention period. During the

epidemic, new regulatory policies for the industry were introduced, which significantly relaxed the restrictions on Internet + medical care, and opened up many related links such as medical insurance and payment. In 2020, the country officially included Internet medical services into medical insurance, which accelerated the rapid explosion of the Internet medical market. As users gradually develop the habit of obtaining medical services on mobile terminals, the market size of Internet medical care and pharmaceutical e-commerce will continue to grow in the future.

2.2 Revenue ratio

Alibaba Health's half-year revenue is 9.36 billion yuan, and its medical health and digital service business revenue is 228 million yuan.

According to Ali Health's 2021 semi-annual financial report data, the half-year revenue as of September 30, 2021 totaled 93.6 million yuan 100 million yuan, a year-on-year increase of 30.7%, with a gross profit of 1.87 billion yuan. At the same time, Ali Health's interim performance turned from profit to loss, with a loss of 230 million yuan.The main revenue is divided into the following three categories:

• Pharmaceutical self-operated business: revenue of 8.119 billion yuan, a year-on-year increase of 34.5%, accounting for 86.8% of the total revenue.
• Pharmaceutical e-commerce platform business (Tmall Pharmaceutical Platform): 's revenue was 1.010 billion yuan, a year-on-year increase of 9.2%, accounting for about 10.8% of the total revenue. The main business includes prescription drugs, over-the-counter (OTC) drugs, health supplements, medical devices, contact lenses and many other health-related products.
• Healthcare and digital service business: ’s revenue was 228 million yuan, a year-on-year increase of 13.9%, accounting for 2.4% of total revenue. AliHealth reorganized the medical and health service business and digital infrastructure business into a medical health and digital service business, including online consultation, vaccines, nucleic acid testing, oral cavity and other businesses, and this is also the main revenue contribution of Yilu app.

Data source-Alibaba Health Financial Report

JD Health's 2021 half-year revenue is 13.64 billion yuan, of which platform service advertising and other service revenue is 1.876 billion yuan.

According to JD Health's 2021 interim financial report data, the half-year revenue was 13.64 billion yuan, a year-on-year increase of 55.4%, the gross profit was 3.307 billion yuan, and the loss was 454 million yuan. The increase in total revenue was mainly due to the sales of pharmaceuticals and health products. Commodity income.

• Pharmaceutical and health products: 's revenue was 11.8 billion yuan, a year-on-year increase of 52.9%, accounting for 86% of the total revenue.
• platform advertising and other services: 's revenue was 1.876 billion yuan, a year-on-year increase of 73%, accounting for 14% of the total revenue. The increase in

service revenue was mainly due to an increase in digital marketing service fees. Specifically, the increase in the number of advertisements on the platform and the increase in the sales volume and volume of third-party merchants on the online platform, and thus the increase in commissions and platform usage fees.

Data source - JD Health Financial Report

2.3 The average daily APP downloads of Yilu is 20,000+ higher than that of JD Health 2000+

According to the statistics of Qimai data app store, the average download of Yilu app in the past 30 days is 23,274 times, which is much higher than that of JD.com The healthy 3035 times, from the download curve, the average daily download volume of JD Health is more stable, while the download volume of Yilu is higher than that of JD Health under the blessing of marketing activities, but it fluctuates greatly.

Image source - Qima Data

Image source - Qima Data

Summary: Overall, each company's income mainly comes from self-operated pharmaceutical income, of which Ali Health and JD Health and Medicine accounted for more than 80% of self-operated, medical Service revenue accounted for less than 15%.

Compared with Alibaba Health, the two platforms have more cooperative merchants and more active users. The average daily app download volume of Yilu is 23,000, which is much higher than that of JD Health's 0.3 million. Ali Health’s financial report shows that as of September 30, 2021, the medical deer app has signed a contract to provide online health consultation services with a total of nearly 140,000 occupational physicians, occupational pharmacists and nutritionists, with more than 2 million monthly active users and an average daily consultation volume of more than 25 10,000 times higher than JD Health's 160,000 times per day.

is based on the platform advantages Taobao, Tmall, Alipay, , and Yilu app to attract traffic from different angles. Alibaba Health has a higher number of annual active users, but its revenue of 228 million is not as good as JD Health's 1.876 billion, exposing the problem of user conversion rate. .

From the perspective of revenue contribution ratio, whether it is Ali Health or JD Health, online pharmacies undoubtedly contributed the most operating revenue of more than 86%, but they are still in a state of loss. The gross profit margin in pharmaceutical e-commerce is basically maintained at 20%-25%. Therefore, online pharmacy is the best drainage business. It initially cultivates consumers' habit of online medical treatment, and relies on online consultation, disease management and other services to increase their profits and achieve healthy development.

3. User analysis

3.1 User portrait

my country's mobile medical users: the proportion of female users is higher, with over 60% of users aged 31-40.

Gender and age distribution of mobile medical services

According to Bida Consulting data, in the first quarter of 2021, among the gender distribution of mobile medical users in China, female users are the majority, accounting for 54.7%; male users account for 45.3%. Female users have higher demand for mobile health care than men. More medical consultations by women, purchases of multi-user healthcare medicines and medical equipment by men.

In the first quarter of 2021, in the age distribution of China's mobile medical users, users aged 36-40 accounted for the highest proportion, accounting for 31.2%; users aged 31-35 accounted for 30.5%; and users aged 25-30 accounted for 19.6%. Those in the range of 36-40 years old have entered social work, are mostly married and have children, and need to be responsible for the health of more people.

China's mobile medical users: users in first-tier and new first-tier cities account for nearly 70%, and Beijing ranks first.

Regional distribution of mobile medical users

In the first quarter of 2021, first-tier cities accounted for 29.5% of the regional distribution of mobile medical users in my country; New first-tier cities accounted for the highest proportion, accounting for 38.6%; second-tier cities accounted for 19.7%.

In the first quarter of 2021, among the urban distribution of mobile medical users in my country, Beijing accounted for the highest proportion, accounting for 10.6%; Shanghai ranked second, accounting for 7.9%; Chengdu ranked third with 7.0%.

In areas with developed economy and rich educational resources, users have stronger acceptance and higher economic expenditure.

3.2 User usage scenarios

• Basic requirements: online consultation and consultation, regular and guaranteed drug purchases.
• Expected requirements: expert consultation, ability to prescribe, efficient drug purchase and fast delivery.
• Excited demand: experts are online 24 hours a day, consult at any time, and issue prescriptions for patients.

Summary: Both can meet the basic needs of users, that is, online consultation and drug purchase. In view of the limited conditions for online consultation and the lack of various inspection results from offline hospitals, doctors cannot obtain enough information to support the diagnosis, resulting in unreliable online initial diagnosis and limiting the development of services.

Fourth, product comparison

4.1 Product structure

Yilu product information structure diagram Different considerations have different levels of distribution of business modules.

On the “Homepage” of the medical deer app, the main business is medical services and vaccine services. The first-level “Ask a Doctor” is used for online consultations, giving medical services a considerable proportion of resources. "Home" is a comprehensive service page focusing on medical services, while "Family Doctor" and "Mall" are also at the first level.

Yilu app failed to find the self-operated pharmacy business at the second level. It can be clearly found in the revenue structure and development process. Self-operated pharmacies are the entry point of Ali Health and JD Health's industrial layout, and they are also two While JD Health has not hesitated to place the mall business in the first-tier position, it is more obvious that it mainly promotes the family doctor business. The

Yilu APP may want to weaken the e-commerce business and emphasize the service attributes of the Internet medical service of the product, but the product structure level is not clear enough.

4.2 function comparison

• From Ali Health, Jingdong Health seems to be very similar in terms of function comparison, the main service sections and department settings of the two are almost the same, and both include Chinese medicine departments.
• Ways of consultation At present, there are two ways of online consultation in Shangyilu app: "image and text consultation" and "telephone consultation", while the online consultation methods of JD Health app include: "image and text consultation" , "Telephone Consultation", "Video Consultation", "Expert Team", "Private Doctor" five types of consultation options, users can choose according to their own situation, in the case of a variety of choices, JD Health app can undoubtedly satisfy wider user needs.
• The JD Health app also includes services such as "prescribed medicines" and "substitute decoction of traditional Chinese medicines" of traditional Chinese medicine hospitals, which greatly facilitates users who need traditional Chinese medicine and traditional Chinese medicine. has huge appeal to users.
• The medical deer app is more comprehensive in operational activities and maternal and child services. There are more and more interesting ways of operating activities, including product "0 yuan trial", "check-in", "steps for gold coins", "health tasks", etc. The gold coins obtained can be used to exchange regional products to attract users to participate and improve the monthly activity at the same time. Increase retention. In terms of maternal and child health, in addition to the "Parenting Encyclopedia", the Yilu app also designed functions such as "Medication Assistant", "Height Prediction" and "Puzzle Games" to assist mothers.

Overall, the medical deer app is slightly insufficient in Internet medical services.

4.3 Core function consultation process

Yilu app simplifies the consultation process

Jingdong Health app simplifies the consultation process

• The two are similar in terms of speed consultation, graphic consultation and telephone consultation process. Selecting the fast consultation first collects the user's condition information through the "AI assistant", conducts triage according to the keywords and determines the corresponding department, and then the user chooses the consultation method recommended by the system to pay for the consultation. diagnosis and so on.
• For graphic and text consultations and telephone consultations, it is necessary to first determine the doctor to be consulted, and then collect the user's condition information.The user selects the consultation time and pays to generate an order and wait to establish voice or video communication with the doctor. The order can be cancelled if no reply is received within 24 hours.
• The family doctor launched by Jingdong is a periodic payment service. Users can choose 7 days, 15 days or 30 days (set by the doctor) as a service period to pay for a service period. During the validity period of the service, they can consult an unlimited number of times at any time, and the service expires. You can renew the contract to continue the service.

Comparing the two consultation processes, except that JD Health has more options for consultation methods, the two processes are almost the same for “image and text consultation” and “telephone consultation”.

4.4 page layout comparison

(1) complete home page comparison

From the perspective of page beauty and standardization of layout, JD Health is more in line with the principles of consistency and intimacy in visual design. The

• principle of intimacy groups related items together so that they are physically close to each other, so that related items are seen as a cohesive group rather than separate pieces. The fundamental purpose is to achieve organization. Putting the same type of content together has different functions, but to a certain extent, it can meet the same needs of users. The
• repetition principle requires the consistency of elements in the product such as fonts, colors, conformity, spatial relationships, and layouts. As can be seen in the distribution diagram of the complete homepage of
• , the parts of the JD Health app from the No. 1 and No. 2 functional modules except for the No. 4 advertising section, the related content with the title in the upper left corner is inside the section, and there are no scattered units. The entire page is more standardized and tidy. The business section is clearly divided, and the layout is more reasonable. From the main business at the top to the health information at the bottom, the health information section provides browsing content based on user interests. The
• Yilu app is too fragmented.The No. 5 and No. 6 sections are the same as the epidemic content and are divided into two parts. The welfare and community nature of the No. 7 same-city parenting group and No. 8 medical beauty experience officer and No. 10 same-city medical beauty group belong to the No. 9 welfare center section, but Sections 7, 8, and 10 are scattered outside the welfare center section, and the page segmentation is too fine and messy.
• and the content of the page ends after the most recent live broadcast, and there is no health science or other content set up. At this point, the use of page space by Yilu is very poor. The function distribution of the Yilu app includes popular science such as "Parenting Encyclopedia" and "Growth Weekly". Content, you can use the first bottom display.

(2) Homepage comparison

• The bottom navigation of the medical deer app includes "Home", "Ask a Doctor", "News", and "My". The navigation at the bottom of the JD Health app homepage includes "Home", "Family Doctor", "Mall", "News", and "My". JD Health placed the self-operated pharmacy with the largest revenue share on the bottom navigation, while Yilu chose to lower the self-operated level and put it in the top small function grid.
• The Xiaogongge function at the top of the
• medical deer app does not support user personalized editing, and common functions cannot be placed on the first page, which makes it inconvenient for users to find and use common functions. The reason why the analysis cannot be edited is that "self-operated pharmacy" is placed in the fifth position of Xiaogongge. As an important business of revenue, it needs to have a certain degree of exposure. If it can be edited, it may be placed on the second page by users. Self-operated pharmacies exposure will be further reduced.
• There is no clear classification for the small functions of the medical deer app. Is it a popular science of health knowledge? Or a promotion? Or online medical services? In the absence of clear division, the cluttered combination of many functions will lead to higher learning and use costs for users, while the Jingdong Health app displays 10 per page, and you can click "More Services" to find all functions and edit common functions. , giving users great convenience.

(3) Comparison of consultation pages

• Both provide the function of finding a doctor by disease, and provide users with labels for common diseases. Click to enter the consultation page. It is convenient for users to quickly find the corresponding doctor for consultation without being familiar with the department corresponding to the disease. The difference between
• is that the medical deer app provides a search function for all diseases except common diseases. The advantage is that users can find a doctor according to their own symptoms. The disadvantage is that the large number of diseases makes the search method from all diseases too inefficient and there may be a dilemma that there is no corresponding doctor.
• The Medical Deer app recommends some departments in the section to find a doctor by department. Users who are not in the recommended department can click all departments to find a doctor. This design increases the user's operation steps, which can completely display all departments on the current page. If the user needs to find subdivided departments, they can click all departments to reduce unnecessary operations. The
• Jingdong app displays all departments on the current page. In addition, a special section for famous doctors is designed to recommend excellent doctors in various hospitals and departments for users.

At the same time, the functions of the “Find an Expert” page on the homepage and the “Ask a Doctor” page in the bottom navigation are highly overlapping. They are both pages that can conduct online consultations by search and department, which take up too many resources.

But what is puzzling is that the "find a doctor by disease" function has been removed from the "Ask a Doctor" page. It is necessary to know that there are such users who know where they are uncomfortable but don't know which department to see a doctor.

Therefore, this function is very useful. Removing this function means that if the user cannot click on the common symptoms on the "Ask a Doctor" page to go directly to the list of doctors, "Search" and "Find a doctor by department" are not as good as "Find a doctor by disease". way is simple and quick. If a user wants to "find a doctor by disease", he can either enter the name of the disease in the search bar or return to the "home page" and click "find an expert", the inconsistency between the two pages increases the user's usage cost.

(4) My page comparison

"My" page function typesetting method, the medical deer selection list type, and Jingdong Health and Ping An health selection matrix type, the two different display methods lie in the matrix type within the same size of the page Can display more function icons. The

Jingdong Health app is more clear about the function grouping pages, making it easier for users to find them when they need them.

(5) Health file comparison

Medical deer app health file comparison JD Health's health file information is very simple, including personal information, nearby records, and vaccination information. The health care information of the JD Health app is more comprehensive. It can upload blood pressure, blood sugar and other information to detect physical conditions by connecting to smart devices. At the same time, it evaluates and summarizes the physical health of users in combination with physical examination reports, medical records and lifestyles, truly forming a housekeeper. style service.

Summary: is slightly lacking in product design of the medical deer app.

Overall, the level arrangement of self-operated pharmacies is unreasonable, and the location of the entrance is too hidden, which reduces the exposure of self-operated pharmacies in the process of product use. Not friendly to new users. At the same time, the functions of "find an expert" on the home page and "ask a doctor" page in the bottom navigation of

are highly overlapping, but they lack consistency. Users have to choose other search methods or switch pages, which will inevitably increase the user's cost of use. This design is obviously unreasonable.

Secondly, it can be seen that the medical deer app is currently exposed to deficiencies in the detailed design, such as the selection of common function design and some page layout methods according to the user's personalized editing.

5. Summary

In October last year, regulatory policies strengthened medical records, prescriptions, drug supervision, and AI to replace doctors' prescriptions. In fact, the online medical industry is still in its infancy and exploration and development stage, and there is still huge room for growth.

At present, the development direction of online consultation, pre-diagnosis health management and post-diagnosis chronic disease management, and consumer medical and health services is relatively clear. one of the directions. However, due to the imperfection of remote inspection technology, the diagnosis results of online consultation lack reliability. At present, online consultation is actually more of "consultation". Patients still need to rely on offline scenarios to complete the diagnosis. The linkage between online and offline is the current development trend of Internet medical care.

Alibaba Health and JD Health have their own layouts. In the case that the types of drugs and medical resources are not comparable, it is believed that a competition between service quality and platform products will eventually be formed. At that time, the products that win the trust of users will be the first to achieve "one-stop" or "Housekeeping" development goals.

This article was originally published by @Muggle on Everyone Is a Product Manager. Reproduction is prohibited without the author's permission. The

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